Major Exit: Sumitomo Chemical Exits Aluminum Smelting and Ingot Resale Business

Japanese industrial giant Sumitomo Chemical announced its decision to sell its 2.97% stake in Japan Amazon Aluminum Co., Ltd. (NAAC) to YKK AP Inc. for an undisclosed amount.

This move, together with the previously announced sale of stakes in two overseas aluminum smelting companies in May 2024, marks the company's complete exit from aluminum smelting and ingot resale business.

Aluminum resale is often affected by global price fluctuations, geopolitical factors and supply and demand imbalances. The company may seek to reduce its financial risks through an exit.

Sumitomo Chemical's inorganic materials business includes aluminum and alumina, based on the company's accumulated technical strength, talent and other business resources in the aluminum smelting business. For high-purity aluminum and high-purity alumina produced by the Ehime plant, Sumitomo Chemical will invest more resources to expand the business, focusing on high value-added fields such as semiconductors and life sciences.

Sumitomo Chemical Group is stepping up its efforts to improve short-term performance to achieve a strong V-shaped recovery in fiscal 2024. The measures are also aimed at strengthening the Group’s financial foundation, paving the way for strategic structural reforms and advancing the transformation of the business portfolio.